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Comenity Bank Issued Credit Cards: The Pros and Cons of Store Cards

Comenity Bank -- now Bread Financial -- issues a number of well-known retail credit cards.

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Comenity Bank has partnered with retailers for decades to issue store-branded credit cards. It currently works with a number of big brands, including Ikea, Wayfair and GameStop.

Comenity Bank recently underwent a brand change. It’s now Bread Financial, a financial services company offering payment, lending and savings products, among others. That means if you’re already a Comenity cardholder, you’ll eventually see Bread Financial and its new logo replace the Comenity Bank name and logo.

Store credit cards are credit cards co-branded with retailers to reward consumers when they shop at that specific store. Comenity -- or Bread Financial -- is the issuing bank for more than 100 store credit cards.

What is a store credit card?

A store credit card is a credit card offered specifically by a retailer. Some, called open-loop cards, let you use the card elsewhere; closed-loop cards only allow you to shop at that specific store. You’ll earn rewards for purchases or gain access to special discounts and perks. Many store credit cards let you use the card in-store or online. 

Qualifying for a store credit card is much like any other type of credit card. You’ll complete a credit card application with some personal information -- like your birthdate, address and Social Security number -- and you’ll approve a credit check. 

Store credit cards might have a lower threshold to qualify compared to other types of credit cards that can be used everywhere. If you have fair or bad credit, you might qualify for a store credit card faster than a general one. Just be aware they typically have higher annual percentage rates than standard credit cards.

Which stores work with Comenity Bank?

Comenity Bank, or Bread Financial, is the issuing bank for some of your favorite retailers’ credit cards like Bed Bath & Beyond, Eddie Bauer and even the NFL. Comenity Bank issues over 100 store cards, including for:

  • Ikea
  • Ann Taylor
  • Victoria’s Secret
  • DSW
  • BJ’s
  • Eddie Bauer
  • Sony
  • Forever 21
  • GameStop
  • Lane Bryant
  • Tire Kingdom
  • Overstock
  • Wayfair

Benefits of Comenity Bank credit cards

Each retailer sets its own incentives. For instance, the Wayfair Mastercard® offers $40 off your qualifying first order of $250 or more. It also earns 5% back at Wayfair, 3% at grocery stores, 2% online and 1% everywhere else, if you choose to earn rewards instead of special financing. The NFL Extra Points Visa® Credit Card earns 3% back in rewards when you buy from the NFL, plus 2% back at grocery stores, for food delivery and gyms, among others.

If you’re exploring store-branded credit cards, you can look at the individual benefits set by the store. For instance, do they offer cash back? And if so, how much? Can you use the card anywhere else, or only with the retailer?

Pros and cons of Comenity Bank credit cards

Like all credit cards, the ones issued by Comenity Bank/Bread Financial have their benefits and drawbacks.


  • Easy entry to credit building: Many store credit cards have a lower threshold for qualification. That means if you don’t have much credit and want to build it without getting a secured credit card, you may qualify for a store credit card.

  • Earn rewards: While programs vary based on the retailer, most store credit cards offer some type of rewards or discounts.

  • Welcome offers: Some companies offer welcome bonuses or special deals, which might be worth signing up for depending on the size of the bonus and how frequently you shop.


  • Limited use: Depending on the retailer, you might be limited in where you can use your card. Some companies only allow the card to be used at its stores (whether online or at brick-and-mortar locations).

  • Higher interest rates: Most store credit cards charge higher interest rates than other types of credit cards.

The bottom line

For frequent shoppers, store credit cards might be worth exploring. You can earn rewards and build your credit, especially if you have lower credit scores. Just be sure to not carry a balance to avoid high interest charges.


Comenity Bank, now Bread Financial, offers dozens of different credit cards for various stores and companies. Remember, when you complete a credit card application, your credit score takes a temporary dip -- so you may not want to apply for too many retailer cards in quick succession.

The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.

Dori Zinn loves helping people learn and understand money. She's been covering personal finance for a decade and her writing has appeared in Wirecutter, Credit Karma, Huffington Post and more.
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